Trian Fund Management Takes Stake in Procter & Gamble

By David Benoit

Trian Fund Management LP has built a large position in Procter & Gamble Co., the second shareholder activist in recent years to set its sights on the consumer-products giant.

Trian is expected to disclose that it owns a stake in the Cincinnati maker of Tide detergent, Gillette razors and Pampers diapers as early as Tuesday, according to people familiar with the matter. The exact size of the investment couldn’t be learned.

It’s not clear what Trian is planning for the investment, but historically the firm has focused on companies it believes need tighter focus on core operations, as well as on cutting costs and management bureaucracy. As with other activists, it’s also known for advocating asset sales or breakups. Trian sometimes works quietly from inside the boardroom and at other times wages public battles for influence.

P&G had a market value of about $225 billion as of Tuesday’s close making it one of the biggest companies to face an activist, but Trian has had success at major companies before, including DuPont Co.

This is not the first time P&G has faced an activist. In 2012, William Ackman’s Pershing Square Capital Management LP invested in the company and called for a CEO change amid slumping profits. A year later, Robert McDonald was replaced by his old boss, A.G. Lafley, who remained chairman until last year. Company veteran David Taylor is now chairman and CEO.

Write to David Benoit at david.benoit@wsj.com

Breaking the story

David Benoit first broke the news that Trian Fund Management LP had built a large stake in Procter & Gamble Co.

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